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Microcap & Penny Stocks : ACRT about to move to new highs -- Ignore unavailable to you. Want to Upgrade?

To: Jonathan Cleveland who wrote (4530)	3/27/1998 6:35:00 PM
From: Andrew Q. Viet	Read Replies (1) \| Respond to of 7054

Here is the latest analysis from II ( It may not mean much do your own DD, before investing) This will be our final update concerning the false rumors and propaganda surrounding Actrade (ACRT). Actrade's management has emphatically stated that the company's accounting policies strictly follow all U.S. GAAP and FASB accounting guidelines. In order to be selected as a Magic 25 stock, Individual Investor performed an extraordinary amount of due diligence and found no accounting irregularities. Actrade is currently in a classic "bear trap," beaten down by short sellers using the Internet to spread rumors and innuendo about the company. After the dust settles and Actrade starts to trade on its intrinsic fundamentals, the bears could get squeezed out, putting substantial upward pressure on the stock. Over the last few months, anonymous electronic tipsters have made a series of what we believe to be unsubstantiated claims regarding Actrade's accounting practices. As we've reported, we've not been able to corroborate any of the short's claims. The latest short seller is Key West Securities, an obscure Texas-based brokerage firm. We tried repeatedly to contact Key West's Anthony Elgindy regarding his concerns about the company. At a minimum, we hoped he could at least provide us with a copy of his report to determine his investment thesis. Unfortunately, our numerous phone calls have gone unreturned and no report has surfaced. We dug further into Key West and think investors should be aware of Mr. Elgindy's dealings in the investment community. He is currently involved in a high-profile spat with the Jordan Belfort, the former head of scandal-ridden brokerage house, Stratton Oakmont (Stratton Oakmont is under Federal investigation for it's "chop-shop" practices, for allegedly hyping penny stocks, only to dump them at a high price on less-than-savvy investors). Belfort is said to be a minority investor in Key West Securities. More troubling, though, is Elgindy's run-in with the NASD. Last December, Business Week reported, "In September, Elgindy settled NASD charges of alleged trading abuses by consenting to a fine and one-year ban as principal of a brokerage firm." The article stated that one of Elgindy's colleagues, Robert LoRusso, had asserted that "Elgindy misappropriated funds and failed to disclose regulatory problems." In 1993, while with another brokerage firm, Elgindy was involved in an aborted IPO that was denied by the NASDAQ due to the prominent role played by a disbarred broker in the deal. Though Elgindy escaped legal action, we believe the incident again highlights the nature of his financial dealings. We are in the business of picking stocks through old-fashioned fundamental analysis and legitimate short sellers provide a valuable service by uncovering overvalued stocks. But the relentless pounding of Actrade by short sellers who hide behind aliases and offer no evidence behind their opinions, is unfounded.